Bull Market Signal for Cryptocurrencies: ERC-20 Stablecoin Supply Reaches Record $185 Billion

Bull Market Signal for Cryptocurrencies: ERC-20 Stablecoin Supply Reaches Record $185 Billion

Summary: Recent data highlights a favorable trend in the supply of stablecoins, indicating potential growth for the cryptocurrency market. The ERC-20 stablecoin supply has reached a remarkable $185 billion, and Binance users are maintaining a significant amount of stablecoins for future market opportunities.

Key Takeaways:

Stablecoin supply trends suggest positive growth prospects for the cryptocurrency market, according to new research.
The ERC-20 stablecoin supply has achieved a remarkable $185 billion.
Users on Binance are holding stablecoins as "dry powder" for potential market entries.

Research Shows Importance of Stablecoins Over M2 Supply

Research from the on-chain analytics platform CryptoQuant reveals that the stablecoin supply is nearing all-time highs this November. Despite some recent short-term fluctuations, the internal liquidity within the crypto market indicates prospective growth.

As of 2025, the total supply of stablecoins on the Ethereum network (specifically, ERC-20 tokens) has reached $185 billion, setting a new record. This level has remained consistent throughout November. Contributor XWIN Research Japan emphasized that this trend is more stable than Bitcoin's price fluctuations, highlighting that it accurately reflects the influx of capital into the crypto ecosystem.

ERC-20 stablecoin supply (source: CryptoQuant)

As reported by Cointelegraph, the performance of cryptocurrencies has often been correlated with changes in the global M2 money supply. Following record highs earlier in 2025, this liquidity measure has experienced a slowdown, leading to a more uncertain environment for risk assets.

BTC/USD vs. global M2 supply (source: CryptoQuant)

However, XWIN argues that stablecoins should be viewed as a more critical performance metric for the industry. They believe that the supply of stablecoins is significant for several reasons:

It serves as the primary source of liquidity for trading, decentralized exchanges (DEXs), lending, and derivatives.
It adjusts rapidly, reflecting investor activity quicker than the monthly or quarterly updates of M2 data.
It tracks inflows from institutional investors and exchange-traded funds (ETFs) related to cryptocurrencies.

Focus on Stablecoin “Dry Powder”

This trend is evident in the liquidity dynamics on the top global crypto exchange, Binance.

Binance mixed stablecoin reserves (source: CryptoQuant)

As noted by CryptoQuant earlier this week, the rapidly increasing stablecoin reserves on Binance contrast sharply with the falling reserves of Bitcoin and Ether. This distinctive situation—where stablecoin reserves surge while Bitcoin and Ether supplies decline—suggests that traders are realizing profits at market peaks and are currently holding substantial amounts of "dry powder" for potential market re-entries.

In conclusion, the growing supply of stablecoins paints a promising picture for the future of the cryptocurrency market, indicating continued interest and potential for growth.